African swine fever restrictions threaten border municipalities’ finances

Restrictions imposed to contain African swine fever are hitting the economies of Virolahti and Miehikkälä in southeastern Finland, Yle reports. Officials in both municipalities are calling on the state to compensate businesses and local authorities for their losses.

African swine fever was found last week in wild boar piglets in Virolahti, in the Kymenlaakso region. The Finnish Food Authority confirmed the disease in wild boar on July 30, after which restriction zones were established in southeastern Finland.

Forestry work and hunting are prohibited in the zones to prevent wild boar from becoming frightened and moving beyond the infected area. The restriction zone extends from Virolahti to Ylämaa in Lappeenranta.

“We did not need another blow like this. Once again, there is a new restriction affecting people’s daily lives and businesses,” Virolahti municipal manager Topi Heinänen told Yle.

He said the small municipality felt it was now carrying responsibility for combating African swine fever on behalf of the whole country. Virolahti has already been affected by the closure of the eastern border, which has halted tourism, while aviation and maritime traffic in the eastern Gulf of Finland have also been restricted several times in recent weeks.

Forestry income at risk

Miehikkälä municipal manager Anne Ukkonen estimates that the municipality could lose as much as several hundred thousand euros. The municipality has sold around 200,000 euros worth of timber this year, but next year’s income is at risk because restrictions prevent it from entering into logging contracts.

Virolahti has not received income from timber sales this year, but local businesses are being affected. Forestry contractors face strict requirements for washing and disinfecting machinery, while timber trading has stopped.

Farmers are concerned about whether they will be able to deliver grain and whether buyers will accept it. Catering businesses are also affected because services are no longer needed for moose hunting celebrations. The celebrations will not be held because moose hunting has been cancelled.

“If entrepreneurs’ machinery is standing idle and they cannot work, that affects municipal corporation tax revenues. It is impossible to estimate the scale of the impact at this stage,” Heinänen said.

Municipalities seek state support

The municipal managers want the state to compensate for the financial losses, comparing the situation with the economic effects of the coronavirus years.

“I fully understand that people do not want African swine fever to spread to pig farms and that the restrictions are protecting Finnish pig farming. But one region is now carrying this responsibility on behalf of the whole country,” Heinänen said.

The restrictions have also halted the operations of entrepreneur Timo Ikonen’s on-farm slaughterhouse in Lappeenranta. The losses could reach tens of thousands of euros at worst.

Parts of Lappeenranta have also been affected. City manager Tuomo Sallinen said the city was seeking ways to help businesses affected by the restrictions. He said the Finnish Food Authority had some compensation practices in place, but he did not know which industries they covered.